Your debts may fall into one of four types: Priority, Secured, Unsecured Non-Priority, and Special.
Certainly you don't have to know the difference between types of debt. That's why you hire a skilled bankruptcy attorney. In your consultation, we will answer any questions about your debts; including type and how much you could expect to pay towards the debt in a Chapter 7 or 11 or 13. Nonetheless, it's good to be informed:
Your Priority Debts typically include your taxes if they are less than 3 years old, and some kinds of spousal and child support payments which are past due.
Your Secured Debts could include mortgage loans, car loans, and furniture and jewelry loans. If any of your property is used as collateral for a loan, then the debt is one of your secured debts. If someone you owe has recorded a lien against your property then that debt is also secured. You may be able to wipe out this type of lien in Chapter 13 or 11 bankruptcy.
If you're behind on your Mortgage payments, your Chapter 13 or 11 Plan will repay your missed Mortgage payments up to the date you file for Chapter 13 or 11.
Unsecured Non-Priority Debts.
Your Unsecured Non-Priority Debts could include your taxes from more than 3 years ago, your credit card debt, medical bills, and any personal loans you owe.
Some Debts Are Special.
In Chapter 13 or 11 you are telling the court that you cannot afford to pay back all the money you owe, but if you were to pay some of your debt, then you would be able to get back on your feet again. So with most of your debt, you will be paying a fraction of what you owe. There are some kinds of debt, however, which require you pay them in full through your Bankruptcy Plan. When your bankruptcy is over remaining unpaid debt will not be forgiven. Typically these types of debt may include, but are not limited to:
* Some of your student loans
* Specific child support
* Specific spousal support
* Court ordered restitution
* Criminal fines
* Debts which resulted from a drunk driving
* Most of your recent taxes
which are less than 3 years old will have to be paid in full but with no accruing interest or penalties.